Bitcoin & Ethereum Surge as Crypto Market Reaches Record Highs
By On Thursday, Bitcoin (BTC-USD) surged beyond $25,000 for the first time since June 2022, trading as high as $25,104 and bringing year-to-date gains for the world's biggest cryptocurrency to north of 50%.[0] Ethereum (ETH-USD) also rose significantly, up 8.6% to $1.71K.[1] Both tokens still have a lot of ground to cover to reach their respective November 2021 highs, as seen in this chart.[1]
In the past 24 hours, the crypto market capitalization saw an increase of 6.9%, reaching US$1.10 trillion, the highest it has been since mid-August. Furthermore, the total trading volume was up 7.9%, settling at US$63.61 billion.[2]
The surge was attributed to a decrease in risk aversion and a seeming U.S. regulatory crackdown on digital assets. The consumer price index report for January also showed inflation rising 0.5% for an annual increase of 6.4% to start off 2023, which was slightly higher than the forecast 0.4% and 6.2% respectively.[3]
Galaxy Digital Holdings CEO Mike Novogratz said there’s a good chance of Bitcoin returning to $30,000 by the end of next month — a far cry from the $500,000 he once predicted for the digital currency, but still almost 25% above its current price.[4]
“What makes me skeptical that we can have the explosive, back-to-the-old highs this year is Chairman Powell. He’s really doing what he says he’s going to do, and I don’t see the Fed pivoting and cutting anytime soon,” Novogratz said.[5]
The move appears to have been sparked by a short squeeze following softer-than-feared comments from the SEC, and optimism was concentrated in Bitcoin and Ethereum.[6] BNB rose 7.1% to US$317.39, while Bitcoin broke through the US$24,000 price ceiling for the first time in two weeks to reach its highest price since mid-August.[7]
As the market appears to be picking up steam and people are brushing off any bearish news, there are increasing signs that the market bottomed last November and is now in a bullish rally.[8] This move pushes the world’s largest cryptocurrency above a ceiling at $24,200, hitting its strongest point since August 20 in the process.[9]
0. “Bitcoin briefly soars beyond $25k; $232M in shorts liquidated” CryptoSlate, 16 Feb. 2023, https://cryptoslate.com/bitcoin-briefly-soars-beyond-25k-liquidates-232m-from-short-sellers/
1. “Bitcoin pops to highest in six months as regulatory crackdown fears ebb” Seeking Alpha, 16 Feb. 2023, https://seekingalpha.com/news/3937311-bitcoin-pops-to-highest-in-six-months-as-regulatory-crackdown-fears-ebb
2. “Bitcoin Price Hitting $30,000 This Quarter ‘Wouldn't Surprise' This CEO – Here's Why” Bitcoinist, 15 Feb. 2023, https://bitcoinist.com/bitcoin-price-to-hit-30k-ceo
3. “Bitcoin breaks $25K for first time since mid-2022, some hail thaw of crypto winter” Fortune, 16 Feb. 2023, https://fortune.com/crypto/2023/02/16/bitcoin-ethereum-price-rally-0216-ordinals-inflation
4. “Galaxy Digital CEO ‘wouldn’t be surprised’ if Bitcoin hit $30K this quarter” Cointelegraph, 16 Feb. 2023, https://cointelegraph.com/news/galaxy-digital-ceo-wouldn-t-be-surprised-if-bitcoin-hit-30k-this-quarter
5. “Mike Novogratz says he'll be ‘the happiest guy' if bitcoin ends 2023 at $30K” Markets Insider, 16 Feb. 2023, https://markets.businessinsider.com/news/currencies/mike-novogratz-bitcoin-price-prediction-crypto-market-outlook-investing-analysis-2023-2
6. “Bitcoin risks getting stuck near $25K” ForexLive, 16 Feb. 2023, https://www.forexlive.com/Education/bitcoin-risks-getting-stuck-near-25k-20230216
7. “Bitcoin breaches US$24,000 to reach highest price since August as short sellers liquidated” Yahoo Life, 16 Feb. 2023, https://www.yahoo.com/lifestyle/bitcoin-breaches-us-24-000-022519727.html
8. “Bitcoin targets $25000, but does a gigantic ‘bull trap' await?” Finbold – Finance in Bold, 16 Feb. 2023, https://finbold.com/bitcoin-targets-25000-but-does-a-gigantic-bull-trap-await/
9. “Bitcoin, Ethereum Technical Analysis: BTC Nears $25000, Whilst ETH Hits $1700 – Market Updates Bitcoin News” Bitcoin News, 16 Feb. 2023, https://news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-nears-25000-whilst-eth-hits-1700/
